Use Equity To Buy Second Home

The equity in your home can be accessed and used as 'cash' for other things such as home renovations, holidays, retirement or buying a second home or investment property.

Equity is calculated as the difference in the current value of your home and what you owe on it.  For example, if your property is valued at $300,000 and you currently owe $200,000 on your mortgage, then you have $100,000 in equity.

There are many different types of equity loans, with different pay out terms, but if you are taking out the loan to purchase a second property then you would normally take the money in one lump sum. 

An equity home loan enables you to purchase a second property without needing a deposit, and can often save you some of the closing costs associated with taking out a mortgage. There are also some tax benefits for those who take out home equity loans.

Also remember the rental income you can make from owning a second property can often pay for the loan itself.


The best thing you can do to secure your second home quickly and ensure it is cost effective, is to contact Your Local Finance Broker.

Found in: Article (847), Section (57)

Australian Borrowers Face Greater Risks

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Found under: Industry

Bank Fee Income Reaches $12.7B

According to the Reserve Bank fees income from home loans jumped 17% now reaching $1.235 billion.
Found under: Banks

Queensland First Home Buyers, Lowest in 6 Years

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Found under: First Home Buyers

Additional $4000 Grant for First Home Buyers

Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> The Queensland Government will give an additional $4000 grant to first home buyers in areas outside of south east Queensland. ... buyers can’t even afford to buy a property.
Found under: First Home Buyers > Buying Your First Home

Focus on Homeloan Weakens Economic Growth

If banks continue favoring the homeloan sector over lending to business, it would weaken economic growth in the long run, according to NAB. ... according to Joseph Healy favoring home lending may mean less credit to allocate to business.
Found under: Home Loans > all other products

Increased Super Benefits and Tax Breaks on the Verge

mso-hansi-theme-font:minor-latin;} endif--> The Australian government has slashed $840 million from the popular superannuation co-contribution to help pay the costs. ... are also made to first home saver accounts which will give the first home buyers a greater chance to save more.
Found under: Industry > Government & Policy

Perth First Home Buyers Market Down

grant, coupled with unrelenting interest rate hikes concludes into the collapse of Western Australia’s first home buyers market. ... consumer confidence from 116.1 points to 108 points.
Found under: First Home Buyers

Credit Unions Gaining Market Share

One in every ten borrowers are now using a mutual bank for home loan, according to Abacus, the organization representing the Australian mutual sector, which includes the credit unions.
Found under: First Home Buyers > Buying Your First Home

Brisbane and Perth, Most Expensive Homes in Australia

New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} endif--> Brisbane and Perth are the most expensive cities to buy a home in Australia, the Council of Australian Governments Reform Council report shows.
Found under: Real Estate & Property

Low Interest Rates Lead to Higher Debt

interest rates are the main factors pushing many Australian households in greater debt service, according to the Reserve Bank.
Found under: Industry > Interest Rates

Interest rates on hold - RBA

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Found under: Industry > Interest Rates

RBA's Lowe Speech Shows the Two Sides of the Crisis

However, these risks emerge to be the key basis for the local market's surge in optimism about interest rates.
Found under: Industry > Interest Rates

Credit Cards Debts Surpass Mortgage Repayments

According to Edda Claus of Melbourne Institute this result is a concern.
Found under: Industry

Housing Costs in Sydney Increasing

This is due to factors such as migration and influx of high income purchasers, according to Justin Smirk, chief economist for St.
Found under: Real Estate & Property > Building and Construction

NAB Satisfaction Picks Up while Westpac Fall

can be brought by a number of factors like basic banking fees reduction and enhanced home loan pricing.
Found under: Banks > National Australia Bank